The US pet industry is still one of the rare industries that haven’t stopped growing even during the pandemic and lockdowns. In 2020 when almost all the industries slowed down, the pet industry reached 99 billion, and in 2021, it grew to $123 billion.
Many people adopted new pets during the pandemic, especially dogs, and some shelters were rehoming around 13 dogs daily. And these new owners led to an increase in premium food sales, especially the wealthier ones.
Although the industry is growing and reaching all-time highs, some new issues can make predictions for the long-term period difficult. For the first time since the pandemic started, statistics show that US pet owners are now less likely to be afraid of pandemic effects.
However, the high inflation, war in Europe, and other financial problems worry the owners, who are now as concerned about their finances as they were in 2020.
For example, young pet owners from the millenial and Gen Z generation groups are now more conscious of their finances, and their pets might not get the premium treatment they did before.
This means they are more likely to go for a cheaper brand and spend less money on their pets. Some are even worried they might have to give up their pets.
And it’s not without a valid reason. Although the inflation for pet products is not as high as in other product groups, it still got to 9.5% in the last two years. And with the February 2022 price growth, the prices skyrocketed.
The sales are still high, but taking into account all of the above, it’s impossible to calculate just how much these new events and new pet ownerships will impact the industry long-term.